Factory overdrive ‘will give boost to economy’

Expectations for growth in export orders has hit a 40-year highOWEN HUMPHREYS/PRESS ASSOCIATION

Factories are increasing production at the fastest rate in 22 years, according to a closely watched survey that suggests manufacturing may provide a boost for the economy as the dominant services sector begins to slow.

A CBI survey showed manufacturers were recording the highest growth in output since the mid-1990s, especially among food and drink manufacturers, prompting the strongest hiring spree in three years.

The pound immediately rose on the news, hitting $1.3084 against the US dollar, before easing back slightly to $1.3033, but this was less than a cent away from last week’s high of $1.3132, the strongest since September.

Economists said the survey’s data suggested that the UK’s manufacturing sector, which makes up 10 per cent of the economy, had gathered momentum at…